Designing a Social Banking Model to Reduce Conflict of Financial Interest between Banks and Manufacturing Firms through Agent-Based Modeling Simulation

Known as financial intermediaries, banks should direct capital toward different projects and industries in a bid to play a positive role in the sustainable development of society and fulfill their social responsibilities. However, the design frameworks of Iran’s banking business models have failed to simultaneously provide financial interests for firms and banks. Despite the analysis of the agents affecting the liquidity problems of manufacturing firms, the literature has nearly neglected the conflict of financial interest between banks and those firms. Hence, this study aims to design and simulate a social banking model based on agent-based modeling to reduce the conflict of financial interest between banks and manufacturing firms. The social banking model was simulated in NetLogo for Resalat Qard–al-Hasan Bank of Iran, selected due to its leading role in providing inexpensive microfinance services to develop social entrepreneurship without expecting dividends. The proposed model pursues the cash flow and other important financial parameters related to firms, the bank, clients, and Iran's state during the 2017–2022 period. Tested, implemented, and analyzed in multiple simulation intervals, the results indicated changes in the parameters in response to developments based on social banking implementation.